Two Cautionary Tales for Virtual Money Investors

The Cost of Blind Speculation

A seasoned investor who has been involved in digital currencies for many years recently released a debt announcement, revealing his experiences in the Virtual Money market.

This investor first encountered digital currency in November 2013 when Bitcoin was close to the 8000 yuan high. Although the market entered a bear market due to policy influences afterward, he still made a small profit in 2014. At that time, as a student, he viewed investing as a form of entertainment and was not in a hurry to make money.

However, starting from 2015, Virtual Money gradually became his spiritual support. He began to participate frequently in futures trading, seeking thrills through high-risk operations. When the price of Bitcoin was around 5800 yuan, he borrowed 5 BTC for trading. Although he once made a profit of over 600,000 yuan, he ultimately still fell into losses, accumulating a debt of 13.9 BTC.

He could have taken profits in time, but his inner unwillingness and desire for sudden wealth drove him to continue taking risks. He used a large amount of other people's funds and cryptocurrencies for futures trading, hoping to make up for losses through high leverage operations. However, the result was that he lost everything and ended up deeply in debt.

This case once again confirms several important principles of digital currency investment: avoid chasing highs and selling lows, use leverage cautiously, do not over-finance, and be careful with short-term operations. On the contrary, working diligently, investing rationally, holding long-term, and maintaining a good routine are the wise choices.

Blind speculation ultimately results not only in the loss of money but also in the loss of others' trust. This investor's experience warns us that it is crucial to maintain rationality and restraint in the Virtual Money market.

The Thrilling Scene of Key Leakage

Another virtual money investor accidentally sent their wallet mnemonic phrase to a WeChat group of a hundred people, almost causing significant losses.

After the incident, he quickly transferred 38 ETH from his wallet and kept a small amount of ETH as miner fees for transferring other tokens. During the transfer process, he found that someone had already transferred away 0.028 ETH. Fortunately, most of the assets were transferred in time, and the losses were limited.

The investor then took a series of measures: attempting to cut off information sources, seeking official assistance to determine the unlocking time of the locked assets, designing an automatic coin transfer program, and so on. By tracking the records through the blockchain explorer, he ultimately identified the person who transferred the ETH.

When the official unlocking time arrived, the investor successfully transferred the remaining assets, avoiding greater losses. During this process, he received assistance from some insiders.

This event reveals several important lessons:

1. The importance of mnemonic phrases cannot be overlooked, and they should never be transmitted through insecure channels.

2. Digital currency transactions are not completely anonymous; transaction records can be queried on the block explorer.

3. It is very important to seek professional help promptly when encountering problems.

In the decentralized digital world, it is crucial to properly safeguard private keys and mnemonic phrases. This case reminds us to remain vigilant when handling sensitive information to prevent irreparable losses.